HwangDBS sees good returns from China fund

KUALA LUMPUR: Investors can expect a return of between 10 and 25 per cent in 12 months from the newly launched China-centred feeder fund, HwangDBS China Select Fund.

The fund is arguably the country's first fund sub-managed by an asset management company (AMC) that is from China and based there.

"All other funds that are tapping into the growth in China's economy are run by companies outside China. This makes the fund unique," HwangDBS Investment Management Ltd chief executive officer Teng Chee Wai claimed.

The fund is locally managed by HwangDBS and it feeds into the China Select Fund (target fund), which is managed by Citigroup First Management Ltd (CFIM) and sub-managed by China Asset Management (Hong Kong) Ltd, the Hong Kong branch of the China Asset Management Co Ltd (ChinaAMC).

The media was briefed on the open-ended fund, which was launched on July 11, here yesterday.

"The earnings growth for the market in China is expected at about 15 per cent this and next year. We are now at the lower end of the price earnings range.

"For this fund, we can reasonably estimate a return of between 10 and 25 per cent over the next 12 months depending on market volatility," said ChinaAMC (Hong Kong) deputy chief executive officer Anthony Ho.

The minimum investment of the fund is RM30,000 while the additional invesment is RM10,000.

CFIM managing director Jeremy Collard said the fund provides investors access to the expertise of China's leading asset management company.

"We believe that by combining CFIM's international platform and strong corporate governance with ChinaAMC's domestic expertise and insight in stock selection, we are providing investors with a significant opportunity to benefit from China's growth potential," he said.

ChinaAMC is China's largest and top-ranking fund management company with US$34.23 billion (RM103.03 billion) in assets under management and is ranked number one in every major fund category in China.

About 10 to 30 per cent of the target fund's portfolio will have indirect exposure to China A-shares listed on the Shanghai and Shenzhen stock exchanges, and the remaining 70 to 90 per cent of the target fund's assets will be invested in Chinese companies listed globally in Hong Kong, the US, Taiwan and Singapore.

Meanwhile, Teng said HwangDBS will launch three more funds this year - two retail funds and one wholesale.